Export Promotion: Federal Agencies' Activities and Resources in Fiscal
Year 1999 (Letter Report, 04/10/2000, GAO/NSIAD-00-118).
Pursuant to a congressional request, GAO provided information on U.S.
government programs intended to help businesses promote their products
and services in overseas markets, focusing on: (1) the federal agencies
involved in promoting exports of U.S. goods and services and the export
promotion activities they perform; (2) these agencies' total resources
devoted to export promotion in fiscal year (FY) 1999; and (3) the
agencies' overseas resources devoted to export promotion during this
period.
GAO noted that: (1) 10 federal agencies are involved in export promotion
activities: (a) the Departments of Agriculture, Commerce, Energy, State,
and Transportation; (b) the Export-Import Bank of the United States; (c)
the Overseas Private Investment Corporation; (d) the Small Business
Administration; (e) the Agency for International Development; and (f)
the U.S. Trade and Development Agency; (2) all of these agencies help
educate U.S. businesses about the export process by participating in
trade shows and other events; seven provide financial assistance to
exporters or investors in overseas projects; seven provide trade
contacts; and six gather and disseminate market and trade lead
information; (3) these agencies received approximately $1.9 billion for
export promotion activities in FY 1999; (4) the Export-Import Bank and
the Department of Agriculture, agencies that provide direct financial
support to U.S. exporters, received $1.47 billion, or almost 78 percent,
of this amount; (5) another $299 million (16 percent) was received by
the Department of Commerce, which employed the equivalent of almost
2,000 full-time people in these activities during this period; (6) the
remaining 6 percent was devoted to eight other agencies; (7) seven
agencies devoted approximately $174 million in estimated expenses to
export promotion activities at U.S. overseas posts in FY 1999; (8) of
this amount, about +$110 million came from the Commerce Department,
which devoted the equivalent of over 700 full-time people to these
activities during this period; (9) the Departments of Agriculture and
State devoted $48 million and $14 million respectively; and (10) these
expenditures covered salaries and expenses of overseas staff and
administrative costs associated with overseas facilities.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: NSIAD-00-118
TITLE: Export Promotion: Federal Agencies' Activities and
Resources in Fiscal Year 1999
DATE: 04/10/2000
SUBJECT: Exporting
Business assistance
Sales promotion
Interagency relations
International trade
Agricultural programs
Agricultural policies
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GAO/NSIAD-00-118
Appendix I: Federal Agencies' Participation in the U.S. Agency for
International Development's Global Technology Network
30
Appendix II: Federal Agencies' Export Promotion Programs and
Activities in Fiscal Year 1999
33
Appendix III: Federal Agencies' Export Promotion Activities
Overseas: Fiscal Year 1999 Estimated Expenses and Staffing
by Country
42
Appendix IV: Objectives, Scope, and Methodology
49
Appendix V: Comments From the Department of Commerce
53
Appendix VI: Comments From the U.S. Agency for International Development
56
Appendix VII: GAO Contact and Staff Acknowledgments
58
Table 1: Federal Agencies' Export Promotion Activities 11
Table 2: Federal Resources Devoted to Export Promotion Activities
in Fiscal Year 1999 20
Table 3: Federal Agencies' Overseas Resources Devoted to Export Promotion
Activities in Fiscal Year 1999 26
Table 4: Federal Agencies' Participation in the U.S. Agency for
International Development's Global Technology Network 30
Figure 1: Agencies' Share of Federal Dollars Devoted to Export
Promotion Activities in Fiscal Year 1999 5
Figure 2: Agencies' Share of Staff Devoted to Export Promotion
Activities in Fiscal Year 1999 6
Figure 3: Agencies' Share of Estimated Expenses Devoted to Export Promotion
Activities at U.S. Overseas Posts in Fiscal Year 1999 7
Figure 4: Agencies' Share of Staff Devoted to Export Promotion
Activities at U.S. Overseas Posts in Fiscal Year 1999 8
National Security and
International Affairs Division
B-284757
April 10, 2000
The Honorable John L. Mica
Chairman, Subcommittee on Criminal Justice,
Drug Policy, and Human Resources
Committee on Government Reform
House of Representatives
Dear Mr. Chairman:
Over the past decade, U.S. businesses have increasingly recognized the
benefits of competing in the international marketplace, with exports as a
share of U.S. gross domestic product rising from 6.4 percent in 1988 to
7.9 percent ($672 billion) in 1998. The U.S. government has a variety of
programs intended to help businesses promote their products and services in
overseas markets. At your request, this report (1) identifies the federal
agencies involved in promoting exports of U.S. goods and services and the
export promotion activities they perform, (2) provides these agencies' total
resources devoted to export promotion in fiscal year 1999, and (3) isolates
the agencies' overseas resources devoted to export promotion during this
period. In addition, we describe how some of these agencies participate in a
computerized network that provides trade leads from developing countries to
U.S. exporters.
In defining "export promotion" we focused on programs and activities
conducted by federal agencies that are meant to facilitate specific export
transactions, involve direct contact with U.S. exporters, or have export
promotion as their stated goal.1 Such programs and activities include
providing U.S. businesses with information on the export process through
trade shows, conferences, and seminars; financial assistance in the form of
loans, loan guarantees, grants, and other monetary contributions;
information on foreign markets and trade leads; contacts through trade
missions and individualized meetings; general business counseling and
technology-specific advice; and advocacy through official correspondence or
other forms of government intervention. As agreed with your office, we have
not assessed whether there is unnecessary overlap among the agencies engaged
in these activities because doing so would have required a more lengthy
investigation and on-site visits to U.S. government posts overseas.
Ten federal agencies are involved in export promotion activities: the
Departments of Agriculture, Commerce, Energy, State, and Transportation; the
Export-Import Bank of the United States; the Overseas Private Investment
Corporation; the Small Business Administration; the U.S. Agency for
International Development; and the U.S. Trade and Development Agency. All of
these agencies help educate U.S. businesses about the export process by
participating in trade shows and other events; seven provide financial
assistance to exporters or investors in overseas projects; seven provide
trade contacts; and six gather and disseminate market and/or trade lead
information.
These agencies received approximately $1.9 billion for export promotion
activities in fiscal year 1999. The Export-Import Bank and the Department of
Agriculture, agencies that provide direct financial support to U.S.
exporters, received $1.47 billion, or almost 78 percent, of this amount.
Another $299 million (16 percent) was received by the Department of
Commerce, which employed the equivalent of almost 2,000 full-time people in
these activities during this period. The remaining 6 percent was devoted to
eight other agencies. Figure 1 illustrates these agencies' percentage share
of federal dollars, and figure 2 shows their percentage share of staff
devoted to export promotion activities.
Figure 1: Agencies' Share of Federal Dollars Devoted to Export Promotion
Activities in Fiscal Year 1999
Note: "Other" includes the Departments of Energy, State, and Transportation;
the Small Business Administration; the U.S. Agency for International
Development; and the U.S. Trade and Development Agency.
Source: GAO analysis of agency data.
Figure 2: Agencies' Share of Staff Devoted to Export Promotion Activities in
Fiscal Year 1999
Note 1: Not all staff work full-time on export promotion activities. One
full-time equivalent position is equal to one person working full-time; two
people working half-time; one person working half-time and two people
working one-quarter-time; etc.
Note 2: "Other" includes the Departments of Energy, State, and
Transportation; the Overseas Private Investment Corporation; the Small
Business Administration; the U.S. Agency for International Development; and
the U.S. Trade and Development Agency. (The Overseas Private Investment
Corporation was not included in figure 1 because it is authorized to spend
funds from the fees it collects and the income it earns from Treasury
securities. It generally does not receive a direct appropriation.)
Source: GAO analysis of agency data.
Seven agencies devoted approximately $174 million in estimated expenses to
export promotion activities at U.S. overseas posts in fiscal year 1999. Of
this amount, about $110 million (63 percent) came from the Commerce
Department, which devoted the equivalent of over 700 full-time people to
these activities during this period. The Departments of Agriculture and
State devoted $48 million (28 percent) and $14 million (8 percent),
respectively. These expenditures covered salaries and expenses of overseas
staff and administrative costs associated with overseas facilities. Figure 3
illustrates these agencies' percentage share of estimated expenses, and
figure 4 shows their percentage share of staff devoted to export promotion
activities.
Figure 3: Agencies' Share of Estimated Expenses Devoted to Export Promotion
Activities at U.S. Overseas Posts in Fiscal Year 1999
Note: "Other" includes the Export-Import Bank, the Overseas Private
Investment Corporation, the U.S. Agency for International Development, and
the U.S. Trade and Development Agency.
Source: GAO analysis of agency data.
Figure 4: Agencies' Share of Staff Devoted to Export Promotion Activities at
U.S. Overseas Posts in Fiscal Year 1999
Note: "Other" includes the Export-Import Bank, the Overseas Private
Investment Corporation, the U.S. Agency for International Development, and
the U.S. Trade and Development Agency.
Source: GAO analysis of agency data.
In October 1992, Congress passed legislation aimed at coordinating and
streamlining U.S. export programs and policies.2 Title II of the Export
Enhancement Act of 1992 (P.L. 102-429) authorized the creation of an
interagency body called the Trade Promotion Coordinating Committee. The
Export Enhancement Act requires this committee to issue an annual report to
Congress containing "a governmentwide strategic plan for federal trade
promotion efforts" and describing the plan's implementation.3 According to
the committee, which uses a broader definition of export promotion than the
one we are using, 20 federal entities4 are involved in export promotion
and/or trade policy. These entities range from large agencies with
significant resources devoted to exporting, such as the Departments of
Commerce and Agriculture, to smaller organizations with specific roles in
the export process, such as the Export-Import Bank and the U.S. Trade and
Development Agency. They also include sizeable agencies like the U.S. Agency
for International Development and the Departments of Energy and
Transportation, whose work may lead to exports but whose primary mandates
focus on missions other than exporting.
The Trade Promotion Coordinating Committee has been issuing annual reports,
known as The National Export Strategy, since 1993. Our report differs from
The National Export Strategy in that it uses a narrower, more focused
definition of "export promotion." The programs and activities we have
focused on exclude many of the broader, indirect activities reported on by
the committee, such as bilateral and multilateral trade negotiations
undertaken by the U.S. Trade Representative, the Departments of State and
the Treasury, and other agencies; the challenging of unfair trade practices
by the U.S. Trade Representative, the Labor Department, and other agencies;
and the U.S. Agency for International Development's efforts to raise living
standards in developing countries and transitional economies--activities
that help create sustainable markets in the long run. This is the reason why
we refer to 10 agencies involved in export promotion, while the committee
identified 20.
In addition, our report differs from The National Export Strategy in several
other important respects:
� It includes staffing data.
� It isolates resources associated with agencies' export promotion presence
overseas and provides an allocation of resources by country.
� It describes certain export promotion activities not previously or
currently reported in The National Export Strategy.5
Ten federal agencies perform a variety of activities that help U.S.
exporters advance their sales. We have organized these activities into six
major categories: education, financing and other monetary assistance,
contacts, information gathering and dissemination, technical assistance, and
advocacy (see table 1). All of these agencies participate in educating
exporters about the export process; seven provide monetary assistance; seven
help exporters make contacts with potential buyers; six gather and
disseminate information about foreign markets; five provide
industry-specific or other technical assistance; and five advocate on behalf
of U.S. businesses with foreign officials. Some agencies are more involved
than others in providing these services. For example, the Departments of
Agriculture and Commerce are involved in all six types of activities, and
the Small Business Administration is involved in five.
Table 1: Federal Agencies' Export Promotion Activities
Continued
Export promotion
activity DOC DOE DOTEXIM OPIC SBA STATE TDA USAID/GTNUSDA/FAS
Education
Outreach at trade
events through
seminars, panels, X X X X X X X X X X
booths, etc.
Counseling X X X X
Formal export
training course X X
Total agencies
involved in X X X X X X X X X X
education
Financing & other
monetary assistance
Loans and loan
guarantees for wide X
variety of exports
Long-term loans and
loan guarantees
connected with X
overseas investment
Loan guarantees for
agricultural exports X X
Loan guarantees for
small businesses X
only
Long-term loan
guarantees for X
building ships
Subsidies X
Grants for economic
adjustment and other X
assistance
Grants for
feasibility studies
and related X
project-specific
services
Long-term investment
insurance X
Short- and
medium-term
insurance for export X
sales
Total agencies
involved in X X X X X X X
financial assistance
Contacts
Trade missions X X X X X X
Reverse trade
missions X X X X X
Customized contacts X X X
Total agencies
involved in contacts X X X X X X X
Information
gathering and
dissemination
Market research X X X X X
Sector research X X X X X
Trade leads X X X X X
Total agencies
involved in
information X X X X X X
gathering and
dissemination
Technical assistance
General (business
plans, etc.) X X X
Industry/Technology
specific X X X X
Total agencies
involved in X X X X X
technical assistance
Advocacy for U.S.
firms
Correspondence and
contacts with
foreign government X X X X X
officials
Total agencies
involved in advocacy X X X X X
Legend
DOC = Department of Commerce
DOE = Department of Energy
DOT = Department of Transportation
EXIM = Export-Import Bank
OPIC = Overseas Private Investment Corporation
SBA = Small Business Administration
STATE = State Department
TDA = U.S. Trade and Development Agency
USAID/GTN = U.S. Agency for International Development/Global Technology
Network
USDA/FAS = U.S. Department of Agriculture/Foreign Agricultural Service
Source: GAO analysis of agency data.
All the agencies participate in educational activities that help U.S.
businesses learn about the export process.6 The Commerce Department
maintains a network of over 100 Export Assistance Centers throughout the
country, including 19 "U.S. Export Assistance Centers" in major cities run
jointly by the Commerce Department, the Export-Import Bank, and the Small
Business Administration.7 Agency officials at these centers provide
counseling to businesses on all aspects of the export process, including how
to market their products abroad and how to obtain financing. The Commerce
Department also maintains a Trade Information Center in Washington, D.C.,
which provides counseling to businesses on how to find and use government
programs and guides them through the export process. The Small Business
Administration provides similar counseling through its national network of
Small Business Development Centers. In addition, agencies send officials to
speak at trade seminars and conferences and to speak or staff booths at
forums where exporters display their products or services. For example, the
Export-Import Bank holds an annual conference attended by exporters and
bankers interested in finding out about government programs. Officials from
the Commerce Department, the Export-Import Bank, the Overseas Private
Investment Corporation, the Small Business Administration, and the U.S.
Trade and Development Agency regularly speak at this conference.
Two agencies, the Commerce Department and the Small Business Administration,
have developed formal export training courses. The "Export-Trade Assistance
Partnership" course developed by the Small Business Administration is
currently offered at many of the 19 U.S. Export Assistance Centers around
the country. The course developed by the Commerce Department, called the
"Market Entry Program," is geared toward minority-owned companies and is
being taught in 18 cities, 11 of which also host U.S. Export Assistance
Centers. According to Commerce Department officials, attempts are made to
combine the courses in locations where both are offered.
Seven agencies assist exporters or investors with financing, insurance,
subsidies, and/or grants: the Departments of Agriculture, Commerce, and
Transportation; the Export-Import Bank; the Overseas Private Investment
Corporation; the Small Business Administration; and the U.S. Trade and
Development Agency. Financing (loans and loan guarantees) helps businesses
buy or produce U.S. goods or services for export; assists foreign buyers in
paying for U.S. exports; assures that U.S. exporters and/or lenders will be
paid; or contributes to the viability of overseas investments that may
generate U.S. exports over time. Insurance protects exporters and investors
against commercial and/or political risk.8 Subsidy programs, such as the
Department of Agriculture's Export Enhancement Program and Dairy Export
Incentive Program, make cash payments available to U.S. exporters of
commodities like frozen broilers and milk powder so they can lower their
prices in targeted markets and compete with local producers who are
receiving payments from their governments. Grants are funds that generally
do not have to be repaid.
Of the seven agencies that provide financial assistance, each offers a
specific type. For example, the Export-Import Bank, which is wholly devoted
to providing monetary assistance to U.S. exporters, provides
short-term (up to 1 year) loan guarantees for U.S. exporters that help
finance their pre-export costs (buying or producing goods or services for
export). It also provides insurance for U.S. exporters that covers
commercial and political risk. The insurance generally covers up to a 1-year
period, but can cover up to 7 years depending on the value of the export
contract. In addition, it provides long-term (up to 10 years in most cases)9
loans and loan guarantees to foreign buyers of U.S. exports or their banks.
The Overseas Private Investment Corporation assists U.S. investors with
projects in developing countries and transitional economies, which often
result in U.S. exports to these parts of the world. It provides long-term
(up to 20 years) insurance to these investors against political risk. It
also offers long-term (5-15 years) loans and loan guarantees for costs
connected with investments in developing countries. The U.S. Trade and
Development Agency provides partial funding for engineering and other
studies assessing the viability of projects aimed at raising living
standards in developing countries and transitional economies and generating
U.S. exports. U.S. exporters can obtain complementary services from these
three agencies for different stages of the same project. For example, the
U.S. Trade and Development Agency may provide partial funding of an initial
study; the Overseas Private Investment Corporation may provide financing or
insurance for a subsequent investment in an overseas project; and the
Export-Import Bank may help finance U.S. exports of equipment and machinery
associated with the investment.
Three agencies provide loan guarantees to specific groups of exporters: the
Small Business Administration and the Departments of Agriculture and
Transportation. The Small Business Administration provides pre-export loan
guarantees for small businesses in amounts below $833,333. (The
Export-Import Bank provides pre-export loan guarantees to businesses of all
sizes, including small businesses, but in amounts above $833,333.)
Similarly, the Department of Agriculture provides specialized loan guarantee
programs for commodities such as grain and meat, and the Department of
Transportation provides loan guarantees for construction in U.S. shipyards
of vessels for export. According to Export-Import Bank officials, the Bank
does not compete with these programs, since it generally offers shorter
repayment periods for these items.10
The Commerce Department, through its Economic Development Administration,
provides grants for projects in communities affected by government cutbacks
(for example, military base closures). In recent years, these projects have
included several world trade centers, which host export-related events. In
addition, the Commerce Department's Trade Development unit offers matching
funds for export-related activities to trade associations, states, chambers
of commerce, world trade centers, and other entities. The U.S. Trade and
Development Agency also provides grants, but its grants are restricted to
feasibility studies for overseas projects. (A feasibility study assesses the
cost and other factors involved in deciding whether to proceed with a
proposed project, such as building a power plant.)
Seven agencies help exporters by providing contacts that may lead to sales.
They do this through sending U.S. companies on trade missions abroad or
organizing reverse trade missions, in which potential foreign buyers are
brought to the United States, and by setting up meetings for individual
companies.
The Departments of Agriculture, Commerce, Energy, State, and Transportation,
as well as the Small Business Administration, lead or set up overseas trips
for U.S. companies. The Commerce Department's International Trade
Administration is the most active government entity in this area, and
supports a number of trade missions annually, including 56 in fiscal year
1999. These missions are led by the Secretary of Commerce, other Department
officials, state governors, or U.S. businesses. For example, in 1999, the
Secretary of Commerce led an interagency delegation to a "Commercial
Opportunities and Partnerships" conference in southeastern Europe. The
Department of Transportation led almost a dozen U.S. executives on a
business development mission to Brazil, Chile, and Peru. The Small Business
Administration, through its Office of International Trade, organized a trip
to Mexico funded by participating U.S. businesses. Similarly, the Department
of Energy helped U.S. companies specializing in energy efficiency
technologies participate in trade missions to China, Mexico, Japan, and
Thailand. Some of these agencies have also coordinated their efforts with
the Commerce Department. Officials from the Department of Transportation
have accompanied Commerce Department officials on trips, and the Small
Business Administration has used the Commerce Department's U.S. and Foreign
Commercial Service to set up meetings overseas for the companies
participating in its trade missions. Several of these agencies also conduct
reverse trade missions, as does the U.S. Trade and Development Agency.
Whereas trade and reverse trade missions provide general opportunities for
groups of companies, customized contacts are tailored to the needs of
individual businesses. The three agencies with the largest overseas presence
devoted to export promotion--the Departments of Agriculture, Commerce, and
State--have the resources to offer this service. As reported to us, State
Department officials provide the service at locations where Agriculture
and/or Commerce Department officials are not present.
The Commerce Department and other agencies enhance trade contacts with
related educational services, such as helping companies with market entry
strategies and sponsoring trade fairs and marketing seminars. With the
advent of the internet and electronic commerce, the Commerce Department is
also in the process of adding "virtual" variations to traditional trade
missions. In addition, the Small Business Administration has recently
launched an internet-based service called "Trade Mission
On-Line," which is an electronic compendium of prospective small business
exporters.
The Departments of Agriculture, Commerce, Energy, and State, as well as the
Small Business Administration, gather information on foreign markets,
industry sectors, and sales leads from potential buyers. This information is
collected by officials from the Departments of Agriculture, Commerce, and
State stationed overseas. Commerce Department officials concentrate on
nonagricultural sectors, and State Department officials generally provide
background analyses of foreign markets and industry sectors at locations
where Commerce Department officials are not present. In addition, the U.S.
Agency for International Development maintains a computerized database,
called the Global Technology Network, that automatically matches U.S.
companies with leads from potential foreign buyers in developing countries.
(For more information on this network, see app. I).
The information obtained from these agencies is put into the Commerce
Department's National Trade Data Bank, which serves as a single repository
for all federal international trade information. The Commerce Department's
Trade Information Center acts as a clearinghouse for the National Trade Data
Bank and other information of value to exporters. It directs businesses to
market research and trade leads, provides information on overseas and
domestic trade events, and tells companies how to access reports and
statistics from the National Trade Data Bank.11 The Agriculture Department
also disseminates the agricultural trade information it collects to a list
of 2,800 farmers and other suppliers and to state agricultural organizations
across the country, which in turn distribute the information to even larger
lists of local farmers. In addition, the Small Business Administration is
making an international trade database available to U.S. companies at 171
Small Business Development Centers around the country. The database, called
the "International Trade Data Network," was created and is maintained by the
Rhode Island Export Assistance Center in Smithfield, RI. The network
collects trade-related information from the Departments of Agriculture,
Commerce, and State, as well as from other government entities and from
private sources.12
Five agencies provide technical assistance by helping companies design
business plans or industry-specific approaches to exporting. For example,
retired business executives working with the Small Business Administration
can show individual companies how to set up a business. The Departments of
Agriculture, Energy, and Transportation, as well as industry specialists at
the Department of Commerce, offer industry-specific services or advice (such
as showing foreign governments how U.S. energy or transportation
technologies work.) The Agriculture Department also helps agricultural
industry representatives improve their general business plans to enhance
their exports to foreign markets.
Five agencies--the Departments of Agriculture, Commerce, State, and
Transportation; and the Overseas Private Investment Corporation--advocate on
behalf of U.S. businesses. The Commerce Department has an "Advocacy Center"
that helps U.S. companies bidding on foreign contracts. Assistance provided
by the center can include a visit to a key foreign official by a
high-ranking U.S. government official or by U.S. officials stationed
overseas, or letters to foreign decisionmakers, according to information
made available by the center. For example, in coordination with this center,
the Department of Transportation has generated several letters on behalf of
U.S. companies bidding on airport construction projects in China. The
Overseas Private Investment Corporation advocates on behalf of U.S.
businesses when foreign governments engage in activities that could
potentially lead to a political risk insurance claim. In its comments, the
Commerce Department stated that a body called the "Trade Promotion
Coordinating Committee Advocacy Network" serves as the federal government's
main coordinating body for advocacy.
Resources Devoted to Export Promotion
Of the $1.888 billion devoted to export promotion activities in fiscal year
1999, almost 78 percent was received by the two agencies that provided the
greatest amount of financial assistance to U.S. exporters: the
Export-Import Bank and the Department of Agriculture. The Export-Import Bank
received the largest appropriation for this purpose in fiscal year
1999--$812 million. The Agriculture Department was second, with
$658 million--$589 million in appropriations for specific programs, which
provide subsidies, financing, cost-sharing, or other forms of monetary
assistance; and an estimated $69 million in administrative and other costs
associated with these programs and additional export services, which were
paid for from the Foreign Agricultural Service's fiscal year 1999
appropriation for salaries and expenses. Approximately 16 percent of the
$1.888 billion total--$299 million--went to the Commerce Department, which
does not fund any significant financial assistance programs for exporters
but devotes more staff to promoting exports than any other agency. In fiscal
year 1999, it filled 1,967 full-time equivalent positions for this purpose.
The Export-Import Bank ranked second in staff devoted to export promotion,
with 414 full-time equivalent positions filled by people administering
loans, guarantees, and insurance in fiscal year 1999. The Agriculture
Department was third, with 409. Table 2 contains a listing of 10 agencies'
resources devoted to export promotion activities. (See app. II for more
detailed information on this data, including a description of each agency's
export promotion programs and activities.)
Table 2: Federal Resources Devoted to Export Promotion Activities in Fiscal
Year 1999
Staff
Agency Budget (full-time Type of fundsa
equivalent
positions)
Appropriated;
includes
$10,000,000
Export-Import Bank $812,000,000 414 transferred from
the U.S. Agency for
International
Development
$589,320,000
appropriated for
specific programs;
$68,849,396 from
Agriculture 658,169,396 409 other
appropriations
estimated for
export promotion
activities
$270,390,000
appropriated for
specific agency
units; $28,200,000
Commerce 298,590,000 1,967 from other
appropriations
estimated for
export promotion
activities
$44,000,000
appropriated for
U.S. Trade and agency; $15,000,000
Development Agency 59,000,000 39 transferred to
agency from other
sources
Stateb 24,594,000 251 Appropriated
Transportation 17,288,000 3 Obligated
$5,000,000
appropriated for
specific
activities;
Small Business $6,300,000 from
Administration 11,300,000 38 other
appropriations
estimated for
export promotion
activities
$1,200,000
appropriated for
energy efficiency
program; $2,913,857
Energy 4,113,857 3 obligated for
export promotion
activities
involving fossil
fuels
U.S. Agency for
International
Development/Global 2,807,700 94 Obligated
Technology Networkc
Overseas Private
Investment Corporationd (175,000,000) 190 Authorized
Total e $1,887,862,953 3,408
aIn those instances in which there were no specific appropriations for
export promotion activities, we used portions of appropriated funds
estimated by agency officials or funds obligated by the agency for export
promotion activities in fiscal year 1999. These funds could be used for
export promotion as well as other activities, but the appropriations
language did not identify the portion to be used for export promotion.
Amounts that an agency has set aside or committed to pay are referred to in
this report as obligated."
bThe 251 figure for staff does not represent full-time equivalent positions
filled, but positions budgeted, some of which may not be full-time and some
of which may have gone unfilled. This is the best estimate of full-time
equivalent positions devoted to export promotion activities filled in fiscal
year 1999 that the State Department could provide.
cIn order to avoid double counting, we subtracted 10.3 full-time equivalent
positions filled by Department of Commerce and State employees in fiscal
year 1999.
dThe Overseas Private Investment Corporation is authorized to spend funds
from the fees it collects and the income it earns from Treasury securities.
It generally does not receive a direct appropriation.
eThe total budget figure does not include the Overseas Private Investment
Corporation.
Source: GAO analysis of agency data.
Programs Provided by Two Agencies
The Export-Import Bank in fiscal year 1999 received $825 million in
appropriations for loans and insurance for U.S. exporters and loans and loan
guarantees for foreign buyers. This amount included $50 million in
appropriations for employee salaries and benefits, and other administrative
expenses, and $10 million transferred from the U.S. Agency for International
Development to help with exports of emergency supplies to Central America in
the wake of Hurricane Mitch. According to an official from the Office of
Management and Budget, the Bank's net appropriation of $812 million also
included $13 million in offsetting receipts from loan and guarantee fees and
insurance premiums.
The Agriculture Department's $658 million in fiscal year 1999 export
promotion funds helped U.S. exporters in a variety of ways. For example,
$325.8 million appropriated for its General Sales Manager Programs made loan
guarantees available to foreign banks for the purchase of U.S. grain and
other commodities. Its Dairy Export Incentive and Export Enhancement
Programs, for which a total of $146 million was appropriated in fiscal year
1999, provided exporters of milk and other commodities with cash payments
that allowed them to charge lower, more competitive prices in foreign
markets. Its Market Access Program ($90 million) helped small businesses,
nonprofit trade organizations, and other entities fund promotions of
consumer (that is, brand name) products abroad. The Department's Foreign
Market Development Program ($27.5 million) assisted nonprofit agricultural
trade associations by sharing the cost of market research and other
activities that improve their access to foreign markets. In addition, the
Agriculture Department paid for other export services from the Foreign
Agricultural Service's fiscal year 1999 appropriation for salaries and
expenses. These services included providing trade leads obtained from
Department officials stationed at overseas posts; promoting U.S. exports of
agricultural goods and services to low- and middle-income countries through
market research, specialized training, and other activities; providing lists
of foreign buyers and U.S. suppliers; providing advertising space (for a
small fee) in a biweekly newsletter distributed to over 18,000 potential
buyers in 65 countries; organizing trade shows and trade missions; and
providing export counseling.13
The Commerce Department's $299 million appropriated in fiscal year 1999 for
export promotion activities was allocated primarily to three units within
the Department. Its U.S. and Foreign Commercial Service, which provides U.S.
companies with market research, trade leads, contacts, trade missions, trade
shows, and export counseling at overseas posts and locations across the
country, received $184 million, or about 60 percent of the total. This unit
also accounted for 1,284 (65 percent) of the 1,967
full-time equivalent positions filled by Commerce Department employees
engaged in export promotion activities during this period. The Department's
Trade Development unit, which advocates for U.S. businesses in global
competition for overseas contracts, received $60.4 million
(20 percent) and filled 407 full-time equivalent positions. Its Market
Access and Compliance unit, which helps exporters identify barriers to
foreign markets and the means to overcome them, received $26.3 million
(9 percent) and filled 178 full-time equivalent positions. Six other
Commerce units devoted about 5 percent or less of their resources to
promoting exports.
The U.S. Trade and Development Agency received $44 million in appropriations
in fiscal year 1999. This money is for funding feasibility studies for
projects in developing countries and transitional economies that lead to
U.S. exports. The agency also received an additional $15 million in
transfers from funds provided to carry out the Support for East European
Democracy (SEED) Act of 1989 (P.L. 101-179) and the FREEDOM Support Act of
1992 (P.L. 102-511) for activities in the Balkans and the newly independent
states of the former Soviet Union.
The State Department received $25 million in appropriations in fiscal
year 1999 to conduct business services--advocacy of U.S. business interests
to foreign governments, counseling, and market analysis--and to support the
export promotion efforts of other U.S. government agencies at overseas
posts. These activities were carried out by the Department's regional
bureaus (which include foreign service officers stationed abroad) and its
Bureau for Economic and Business Affairs.
Approximately $11.3 million of the Small Business Administration's
appropriations during this period was devoted to export promotion
activities: support and oversight of the agency's activities at the U.S.
Export Assistance Centers, educating small businesses about the export
process, delivering export financing, gathering and disseminating trade
leads and other export-related information, organizing trade missions, and
conducting other activities through its own staff and a network of local
organizations. According to an agency official, $1 million of these funds
was a congressionally mandated line item to make the Rhode Island Export
Assistance Center's International Trade Data Network available to small
businesses at locations across the country.
The Department of Transportation in fiscal year 1999 approved the issuance
of loan guarantees for three projects involving the export of ships built in
the United States. According to Department officials, under the Federal
Credit Reform Act of 1990 (P.L. 101-508, Title XIII), the Department was
required to set aside $17 million for these projects. In addition,
approximately $250,000 in administrative expenses was allocated to these
projects. Similarly, the Department of Energy set aside approximately
$2.9 million for export projects during this period. These projects included
promoting U.S. coal, oil, and gas technologies in China. The Energy
Department also received an appropriation of $1.2 million for promoting
exports of energy-efficient technologies.
In the absence of any specific appropriations to the U.S. Agency for
International Development for export promotion projects in fiscal
year 1999, this agency set aside approximately $2.8 million to pay U.S. and
overseas-based contractors for gathering and disseminating trade leads in
connection with its Global Technology Network, a computerized database that
automatically matches U.S. companies with leads from potential foreign
buyers.
The Overseas Private Investment Corporation was established to operate on a
self-sustaining basis. Therefore, according to agency officials, it annually
reports "net negative budget authority," which is the amount by which its
sources of funds (insurance premiums and interest earned on Treasury
securities) exceed its uses of funds. For fiscal year 1999, it reported net
negative budget authority of $175 million for promoting U.S. investments in
developing countries and transitional economies.
Presence Devoted to Promoting U.S. Exports
Agency officials from seven agencies (the Departments of Agriculture,
Commerce, and State; the Export-Import Bank; the Overseas Private Investment
Corporation; the U.S. Agency for International Development; and the U.S.
Trade and Development Agency) estimated that expenses connected with export
promotion activities conducted overseas came to $174 million in fiscal year
1999.14 As shown in table 3, the Commerce Department, which maintains the
largest overseas presence devoted to export promotion, had 708 full-time
people stationed around the globe in fiscal year 1999 and accounted for
$109.7 million in estimated expenses
(63 percent). The Agriculture Department's overseas staff and expenses in
fiscal year 1999 were less than half that, or 246 full-time people and
$47.7 million. The State Department in fiscal year 1999 estimated that it
spent $14.3 million on export promotion activities overseas, with the
equivalent of 217 people working full-time on these activities.15 The
remaining four agencies together accounted for 1 percent of estimated
expenses and 3 percent of staff. These agencies' expenses include salaries
and benefits, housing, travel, and administrative and other costs. (See
app. III for a country-by-country allocation of these resources.)
Table 3: Federal Agencies' Overseas Resources Devoted to Export Promotion
Activities in Fiscal Year 1999
Agency Budgeta Staff (full-time
equivalent positions)
Commerce $109,719,194 708
Agriculture 47,708,396 246
Stateb 14,301,742 217
U.S. Agency for International
Development/ 1,077,700 34
Global Technology Networkc
Overseas Private Investment
Corporationd 388,111 1
U.S. Trade and Development Agency 352,903 2
Export-Import Bank 151,530 1
Energy 0 0
Small Business Administration 0 0
Transportation 0 0
Total $173,699,576 1,209
a These budget figures are estimates of actual costs. The costs consist of
salaries and expenses for agency officials stationed overseas in fiscal year
1999 and involved in export promotion activities. We used estimates of
actual costs, because there are no specific appropriations for these costs.
bOf 230 posts, 196 (85 percent) responded to our request for information and
are included in this figure.
cIn order to avoid double counting, we subtracted 10.3 full-time equivalent
positions filled by Department of Commerce and State employees in fiscal
year 1999.
dThe Overseas Private Investment Corporation, the Export-Import Bank, and
the U.S. Trade and Development Agency each have one U.S. employee stationed
at a Caspian Trade and Investment Center in Turkey. The budget for the
Overseas Private Investment Corporation includes funding for the operation
of the center. The U.S. Trade and Development Agency also has an employee
stationed in the Philippines.
Source: GAO analysis of agency data.
Officials from the Departments of Agriculture, Commerce, and State gather
market information and trade leads and assist U.S. companies through trade
missions, counseling, buyer contacts, and other activities. The Commerce
Department officials focus on nonagricultural sectors, and the State
Department officials render most of their assistance in locations where
neither Commerce nor Agriculture Department officials are present.
The U.S. Agency for International Development set aside approximately
$1 million in fiscal year 1999 to pay 29 contractors who worked full-time
gathering trade leads in developing countries for its Global Technology
Network. An additional 28 people--private contractors and officials from the
Departments of Commerce and State, some working full-time and some
part-time--were paid primarily by other sources.
One official each from the Export-Import Bank, the Overseas Private
Investment Corporation, and the U.S. Trade and Development Agency was
stationed at a Caspian Trade and Investment Center in Turkey in fiscal year
1999. These officials spent all their time helping U.S. exporters and
investors with financing and insurance in the oil-rich Caspian Sea region.
The U.S. Trade and Development Agency also had an export promotion official
stationed in the Philippines during this period.
We obtained comments on a draft of this report from the 11 agencies
discussed in the report, and from the Office of Management and Budget. Nine
agencies provided oral comments, while the Department of Commerce and the
U.S. Agency for International Development provided written comments. All the
agencies generally agreed with the information presented and made some
technical corrections, which we incorporated as appropriate. (See app.
IV--scope and methodology--for a list of the agency officials who submitted
comments.)
In its comments, the Commerce Department expressed concern that we had
combined a discussion of services provided by "core" export promotion
agencies (such as the Commerce Department) with those of "secondary" export
promotion agencies. We have added information to the report to point out
that the Commerce Department is the most active provider of certain export
promotion services, and we have provided additional examples of the
Department's activities. In addition, the Commerce Department was concerned
that we did not highlight certain of its activities that help businesses
make trade contacts, such as developing market entry strategies, statistical
data, and analyses; sponsoring trade fairs and marketing seminars; and
providing export counseling at overseas posts and through its network of
domestic offices. We have added a discussion of some of these activities;
the rest are discussed in the appropriate sections of the report. The
Commerce Department's comments are included in their entirety as appendix V.
The U.S. Agency for International Development agreed with the information
presented in the report and clarified the role of the Global Technology
Network. The agency's comments are included in their entirety as appendix
VI.
We are sending copies of this report to appropriate congressional Committees
and to the heads of each of the agencies discussed in this report. In
addition, we are also sending copies of the report to the Honorable Jacob J.
Lew, Director of the Office of Management and Budget, and to other
interested parties. We will also make copies available to others on request.
Please contact me on (202) 512-3655 if you or your staff have any questions
about this report. Another GAO contact and staff acknowledgments are listed
in appendix VII.
Sincerely yours,
Susan S. Westin, Associate Director
International Relations and Trade Issues
Federal Agencies' Participation in the U.S. Agency for International
Development's Global Technology Network
The U.S. Agency for International Development has created a database of
trade leads called the "Global Technology Network." This database
automatically matches and communicates leads on possible export sales from
over 50 developing countries in four key sectors--agriculture, communication
and information, environment and energy, and health--to about 3,500
registered U.S. companies. According to the U.S. Agency for International
Development, the network's primary purpose is to facilitate the transfer of
U.S. technology and services to address development needs in these four
sectors. Seven federal agencies, including the U.S. Agency for International
Development, participate in the database: six input and/or disseminate trade
leads, and four provide linkages with export financing and other programs.
(Three of these four provide linkages and input/disseminate trade leads.)
See table 4 for these agencies' participation in the network.
Table 4: Federal Agencies' Participation in the U.S. Agency for
International Development's Global Technology Network
DOC DOE DOT EXIM OPIC SBA STATE TDA USAID USDA/
FAS
Participation in the
Global Technology
Network
Inputing and/or
disseminating trade leadX X X X X X
data
Linkage with financing
and/or other export X X X X
assistance programs
Legend
DOC = Department of Commerce
DOE = Department of Energy
DOT = Department of Transportation
EXIM = Export-Import Bank
OPIC = Overseas Private Investment Corporation
SBA = Small Business Administration
STATE = State Department
TDA = U.S. Trade and Development Agency
USAID = U.S. Agency for International Development
USDA/FAS = U.S. Department of Agriculture/Foreign Agricultural Service
Source: GAO analysis of agency data.
The Departments of Agriculture, Commerce, Energy, and State; the Small
Business Administration; and the U.S. Agency for International Development
input leads from potential foreign buyers into the database and/or
disseminate leads from the database to wider lists of exporters. The
Departments of Agriculture and Commerce, the Export-Import Bank, and the
Small Business Administration provide U.S. companies using the database with
financing and/or other export assistance programs. They facilitate this
assistance by means of electronic links from the database to their websites.
In addition, Global Technology Network officials have provided training on
how to use their database to export counselors at
17 of the 19 U.S. Export Assistance Centers across the country.
The network uses "push" technology to match U.S. companies with potential
foreign buyers of their products or services. This technology works as
follows. When U.S. companies register to participate in the database, which
is free, they can designate up to 17 different codes categorizing the nature
of their products or services. When potential foreign buyers submit leads to
the system, they indicate the codes they are interested in. The system uses
the codes to match potential buyers with U.S. registrants. Within 48 hours,
the system automatically emails or faxes the U.S. companies information
about the foreign entities seeking to buy their products or services. It is
then up to the U.S. companies receiving this information to contact the
entities and notify the network if they have closed a deal. The network
complements this electronic matching service by providing counseling to U.S.
companies and importing country entities relating to specific leads and by
offering travel grants16 to U.S. companies and importing entities to help
them pursue the leads. Each lead is updated every 3 weeks until a contract
for a sale is signed. According to the Director of the Global Technology
Network, about 100 new leads are received each month. The total number of
leads received in fiscal year 1999 was 1,443.17
In fiscal year 1999, 57 people18 employed by U.S. Agency for International
Development contractors, the Commerce Department, and the State Department
gathered leads in Africa, Asia, Eastern Europe, and Latin America. (App. II
details how many people worked for which agency and what percentage of their
time was spent gathering leads for the network, and app. III shows the
countries in which they worked.) Network representatives have also trained
officials from U.S. and foreign nongovernmental organizations and other
entities to input leads directly into the system. In addition, the
Department of Energy submits leads for small power projects in Eastern
Europe. The Department of Agriculture, which does not have staff stationed
in some of the smaller African and Eastern European countries covered by the
network, disseminates leads from the network to U.S. commodity exporters.
The Agriculture Department is currently working with network officials to
have agricultural officers stationed overseas collect leads on joint
ventures and market opportunities in countries where network representatives
are not present.
Officials from the U.S. Trade and Development Agency stated that the trade
lead service is not relevant to their activities because they focus on the
initial stage of the overseas trade process--feasibility studies--and trade
leads do not come into play until months or years later. Officials from the
Overseas Private Investment Corporation noted that their agency has worked
with the network on a project in Africa and consulted with network
representatives in other regions. The Overseas Private Investment
Corporation is currently considering a memorandum of understanding with the
U.S. Agency for International Development to share investment-related
information through the network.
Federal Agencies' Export Promotion Programs and Activities in Fiscal Year
1999
Continued
Dollars Full-time
Agency/program Type of export devoted to equivalent Notes
promotion activity export positionsb
promotiona filled
Export-Import Bank
These programs The dollar value
provide loans, loan of exports
Programs guarantees, and $765,000,000 414 guaranteed by the
insurance for U.S. Export-Import
exports Bank in FY99 was
$13.067 billion.
Salaries and
Administrative benefits of
expenses Export-Import Bank 50,000,000 N/A
employees
These funds
supported loans,
Transfer of funds loan guarantees,
from the U.S. Agencyand insurance for
for International exports of 10,000,000 N/A
Development (USAID) emergency supplies
to Central America
in the wake of
Hurricane Mitch
Offsetting receipts Loan guarantee
paid by fees; interest N/A
Export-Import Bank payments; insurance (13,000,000)c
customers premiums
Total − 414
Export-Import Bank $812,000,000
Agriculture
Department/Foreign
Agricultural Service
(FAS)
Includes
$3,820,000 in
appropriations
Short-term export for
credit guarantees administrative
(General Sales expenses.
Manager-102 (Administrative
Program); These programs expenses include
medium-term provide loan the salaries and
guarantees (General guarantees for $325,820,000 63 benefits of those
Sales Manager-103 commodity exporters who administer
Program); supplier the program.) The
credit guarantees; dollar value of
and facilities exports
financing guarantees guaranteed under
these programs in
FY99 was $3.045
billion.
This program
provides subsidy
payments (cash
Includes $600,000
Dairy Export payments that allow in estimated
Incentive Program commodity exporters 145,600,000 8 administrative
to sell their goods
in foreign markets expenses.d
at lower, more
competitive prices)
Helps fund Includes
Market Access promotions (e.g., $3,877,000 in
Program advertising) of 93,877,000 55 estimated
consumer products administrative
abroad expenses.
Salaries, benefits,
and expenses of There are no
agricultural specific
attach�s, appropriations
counselors, and for these
trade officers activities; the
Overseas presence stationed overseas 47,708,396 246 dollar figure is
who assist U.S. an estimate of
companies through actual expenses
counseling, buyer (salaries, etc.)
contacts, market incurred in
information, and FY99.e
other activities
Assists nonprofit
trade associations
by sharing the cost Includes
Foreign Market of market research $1,516,000 in
Development Program and other 29,016,000 14 estimated
activities that administrative
improve their expenses.
access to foreign
markets
Promotes U.S.
exports to low- and
middle-income Includes $500,000
Emerging Markets countries through in estimated
Program market research, 10,500,000 6 administrative
specialized expenses.
training, and other
activities
There are no
specific
appropriations
Trade shows and for these
activities; the
Miscellaneous missions; annual 4,015,000 8 dollar figure is
overseas marketing
plans an estimate of
the eight
officials'
salaries and
benefits in FY99.
Includes $150,000
Export Enhancement This program in estimated
Program provides subsidy 1,150,000 2 administrative
payments.
expenses.
Provides trade There are no
leads, foreign specific
buyer lists, and appropriations
advertising space for these
"AgExport (for a small fee) activities; the
Connections" in a biweekly 324,000 5 dollar figure is
newsletter an estimate of
distributed to over the five
18,000 potential officials'
buyers in 65 salaries and
countries benefits in FY99.
Provides export
counseling (e.g.,
by directing There are no
companies to the specific
appropriate appropriations
Agriculture for these
Trade Assistance andDepartment activities; the
Promotion Office officials to answer 159,000 2 dollar figure is
their questions), an estimate of
market information, the two
and information on officials'
how to contact salaries and
distributors and benefits in FY99.
importers
These totals
exclude
appropriations
Total - Agriculture and staff for
Department $658,169,396 409 Public Law 480
Title I and other
food aid
programs. f
Commerce Department
The dollar amount
includes
$7,290,000 in ITA
administrative
expenses
(salaries of
personnel who
perform
administrative
functions, e.g.,
financial
International Trade management,
Administration (ITA) information
U.S. & Foreign Conducts market management,
Commercial Service research; provides etc.). The
unit (includes trade leads and remainder
commercial service contacts; conducts $183,695,000 1,284 ($176,405,000)
officers stationed trade shows; was appropriated
across the country provides export for the salaries,
and at overseas counseling benefits, and
posts) expenses of those
who conduct
export promotion
activities; it
includes
$21,016,000 for
administrative
support services
provided by the
State Department
in connection
with overseas
posts.
Advocates for U.S.
businesses in
global competition
for overseas The dollar amount
contracts; includes
disseminates trade $2,387,000 in ITA
information; administrative
provides export expenses. The
counseling; offers remainder
ITA Trade matching funds for ($58,016,000) was
Development unit export-related 60,403,000 407 appropriated for
activities to trade the salaries,
associations, benefits, and
states, chambers of expenses of those
commerce, world who conduct
trade centers, and export promotion
other entities; activities.
engages in
industry-specific
trade negotiations
The dollar amount
includes $722,000
in ITA
administrative
Identifies barriers expenses. The
to market access remainder
ITA Market Access and the means to ($25,570,000) was
and Compliance unit overcome them; 26,292,000 178 appropriated for
provides export the salaries,
counseling benefits, and
expenses of those
who conduct
export promotion
activities.
These figures
Supplies grants to represent 4.5% of
local governments EDA's grant
Economic Developmentfor facilities to appropriations;
Administration (EDA)support trade 17,500,000 0 no one at EDA was
promotion devoted to such
activities activities
full-time.
Provides technical
assistance (by
assisting exporters These figures
National Institute in situations where represent 1.1% of
of Standards and foreign units of 7,500,000 60 NIST's
Technology (NIST) measure and other appropriated
technical standards funds and 1.9% of
may pose barriers its staff.
to trade)
Provides technical These figures
represent 3% of
Bureau of Export assistance (in the BXA's
Administration (BXA)form of information 1,700,000 26 appropriated
on export
licensing) funds and 5.6% of
its staff.
The dollar figure
is an estimate of
National Engages in the salaries and
Telecommunications industry-specific expenses for
and Information trade negotiations 1,000,000 8 NTIA's
Administration and trade International
(NTIA) conferences Affairs Staff,
which represents
5% of its total
staff.
Provides technical These figures
National Marine assistance (by represent less
Fisheries Service advising exporters 400,000 4 than 1% of
in seafood-related appropriated
industries) funds and staff.
Negligible
percentage of
Provides appropriated
information on the funds and staff
export process to spent on
Minority Business minority-owned Less than export-related
Development Agency businesses (dollar 100,000 0 activities in
amount based on FY99; no grants
cost of one or trips by the
publication) Secretary of
Commerce in that
year.
Total −
Commerce Department $298,590,000 1,967
U.S. Trade and
Development Agency
These programs
provide the
following: grants
for partial funding
of feasibility
studies; other
activities that
help U.S. exporters
in connection with
these studies (such
as "orientation
visits," in which
potential foreign Administrative
Programs and buyers or partners expenses include
administrative visit businesses in $44,000,000 39 salaries and
expenses the United States); benefits of
overseas trips to agency staff.
determine whether
to fund proposed
feasibility
studies; legal
assistance to
foreign governments
negotiating
contracts with U.S.
business;
procurement
assistance; and
conferences
Transfer from funds These funds were
appropriated to for feasibility
carry out the studies and related
Support for East activities in the 15,000,000 N/A
European DemocraciesBalkans and the
(SEED) Act and the newly independent
FREEDOM Support Act states of the
former Soviet Union
Total − U.S.
Trade and $59,000,000 39
Development Agency
State Department
Provides business
services and
Regional bureaus supports trade
(includes overseas missions and other Not
staff and some U.S. government $18,343,000 Available
domestic staff) export promotion
agencies and
programs overseas
Provides "business
services: export,
investment, and
tourism promotion
activities in
direct support of
Bureau for Economic U.S. business and Not
and Business Affairsagriculture through 6,251,000 Available
advocacy of U.S.
business interests
to other
governments;
counseling, market
analysis, trade
directory…"
The 251 figure
does not
represent
full-time
equivalent
positions filled,
but positions
budgeted in FY99,
Total − State some of which may
Department not be full-time
$24,594,000 251
and some of which
may have gone
unfilled. This is
the best estimate
of full-time
equivalent
positions filled
in FY99 that the
State Department
could provide.
Transportation
Department/Maritime
Administration
This dollar
amount was set
aside to pay for
3 export
projects--loan
guarantees for
building 3 ships
to be sold to
Title XI loan Provides loan foreign
guarantees − guarantees for $17,038,000 N/A buyers--approved
program funds building ships in FY99. Although
there was an
appropriation in
FY99 for the
Title XI program
as a whole, there
were no specific
appropriations
for these 3
projects.
The dollar and
staff amounts
were estimated by
determining the
percentage of
administrative
expenses related
to the 3 approved
export projects
Title XI loan Salaries and and multiplying
guarantees − expenses of staff this percentage
administrative working on 3 export 250,000 2.5 by (1) the total
expenses projects administrative
expenses for the
Title XI program
in FY99 and (2)
the total
full-time
equivalent
positions filled
in the title XI
program in FY99.
The guaranteed
Total − portion of the
Transportation $17,288,000 2.5 dollar value of
Department the 3 ships being
built for export
is $374 million.
Small Business
Administration (SBA)
There were no
specific
appropriations
for SBDC export
promotion
activities in
FY99. The dollar
amount was
estimated based
on the percentage
of export-related
Small Business Provide counseling counseling and
Development Centers and training for training sessions
(SBDC) involved in small businesses on $3,400,000 N/A provided by SBDC
international trade how to export staff. The SBDCs
are staffed by
the employees of
the university or
educational
institution in
which they are
located. These
employees are
paid by the
institution and
matching grants
from SBDC funds.
Provides counseling
for small
businesses on trade
finance and assists The dollar amount
them in structuring includes the
their export salaries and
benefits of SBA
Contribution to the transactions to staff at the
U.S. Export apply for SBA's 3,100,000 25 centers, as well
Assistance Centers trade finance as administrative
programs; trains
lenders; educates and other
small businesses on expenses
how to export, connected with
including offering their activities.
a formal export
training course
Staff from SBA's
Office of
International
Trade work on
Export Working these programs.
Capital Program There is no
(short-term specific
financing) and Provide loan appropriation for
International Trade guarantees for 2,700,000 N/A them. The dollar
Loan Program small businesses amount is an
(long-term estimate based on
financing) the percentage of
SBA's overall
finance budget
devoted to the
two programs in
FY99.
Makes this network
available to The International
171 SBDCs around Trade Data
the country. The Network was
created and is
International Trade network gathers and maintained by the
Data Networkg disseminates market 1,000,000 N/A Rhode Island
data, trade leads,
and other Export Assistance
information useful Center at Bryant
to small businesses College in
seeking to export. Smithfield, RI.
Provides policy and
oversight of SBA's
international trade
programs; provides
oversight of SBA
activities at the
U.S. Export
Office of Assistance Centers,
International Trade including an 900,000 13
"Export-Trade
Assistance
Partnership"
course; conducts
trade missions and
other activities to
help small
businesses export
There were no
specific
appropriations
for SCORE export
promotion
activities in
FY99. The dollar
Service Corps of Provides counseling amount was
Retired Executives and training for 200,000 N/A estimated based
(SCORE) small businesses on on the percentage
how to export
of export-related
counseling and
training sessions
provided by SCORE
counselors. SCORE
counselors are
volunteers.
Total − Small
Business $11,300,000 38
Administration
Energy Department
There were no
specific
appropriations
Office of Fossil Promotes U.S. coal, for these
Energy − oil, and gas $2,538,000 N/A activities. The
program funding technologies in dollar amount
China represents the
funds set aside
in FY99 to pay
for them.
The dollar amount
Office of Fossil is an estimate of
Energy - salaries 295,000 2.5 the salaries paid
in FY99.
Office of Fossil The dollar amount
Energy − 42,000 N/A is an estimate of
travel expenses the expenses
incurred in FY99.
Helps U.S.
exporters of
energy-efficient
Committee on technologies by The dollar amount
Renewable Energy, setting up was appropriated
Commerce and Trade seminars, trade 1,200,000 N/A for COEECT
(COEECT) − missions, and activities in
program funding contacts; and FY99.
disseminates
information on
financing options
The dollar amount
is 50% of an
COEECT - salaries 38,857 0.5 estimate of one
person's salary
paid in FY99.
Total − Energy
Department $4,113,857 3
Other USAID
U.S. Agency for activities are
International excluded because
Development/ Global they do not fit
Technology Network the definition of
(USAID/GTN) export promotion
for purposes of
this review.
Includes 21 USAID
staff and
contractors who
spent all their
time on the GTN;
These costs are for 5 International
disseminating trade Executive Service
leads and Corps (IESC)
Domestic costs counseling U.S. volunteers who
(contractor fees) companies and $1,715,000 60 spent 80% of
potential foreign their time on the
buyers regarding GTN; 341 IESC
specific leads volunteers who
spent 10% on GTN;
and 27 state
government
employees who
spent 5% on GTN.
Includes 33 USAID
contractors and 4
Commerce
These costs are for Department
gathering trade officials who
leads and spent all their
Overseas costs counseling U.S. 44 time on the GTN;
(contractor fees) companies and 1,077,700 one contractor
potential foreign and 11 Commerce
buyers regarding officials who
specific leads spent 50% on GTN;
and 8 State
Department
officials who
spent 10% on GTN.
These grants There were no
provide travel specific
funds to U.S. appropriations
companies or for these grants
Travel grants potential foreign 15,000 N/A in FY99. The
buyers for pursuing dollar amount
trade leads represents the
generated by the funds set aside
GTN in FY99 to pay
for them.
The GTN filled 94
full-time
equivalent
positions in FY99
if one subtracts
the 10.3 such
positions
attributed to
Commerce and
State Department
Total − officials. There
USAID/GTN $2,807,700 104 was no specific
appropriation for
the GTN in FY99;
the dollar amount
is an estimate of
the funds set
aside that year
to pay USAID
contractors
working on the
GTN.
Overseas Private
Investment
Corporation (OPIC)
OPIC's programs
provide political
risk insurance These services
covering up to a are offered in
FY99 budget 20-year period, and connection with
authority for loans and loan U.S. investment
program funding and guarantees for $82,500,000 190 in developing
administrative terms of 5-15 countries and
expenses years; its transitional
administrative economies that
expenses include may lead to U.S.
employee salaries exports.
and other expenses
According to an
OPIC budget
official, the
These consist agency has
primarily of consistently
Net offsetting interest on operated on a
collections Treasury securities (257,500,000) N/A "self-sustaining
and insurance basis." It uses
premiums its earnings to
pay its program
and
administrative
expenses.
According to OPIC
officials, "net
Total − negative budget
Overseas Private "Net negative authority" is the
Investment budget authority" ($175,000,000) 190 amount by which
Corporation the agency's
sources of funds
exceed its uses
of funds.
Legend
FY = Fiscal year
N/A = Not applicable
aAmounts appropriated in fiscal year 1999, unless otherwise noted.
bOne full-time equivalent position is equal to one person working full-time;
two people working
half-time; one person working half-time and two people working one-quarter
time, etc.
cNumbers in parentheses are negative numbers.
dThese and other estimated administrative expenses associated with specific
export promotion programs are paid for from the FAS' annual appropriation
for "salaries and expenses." FAS budget officials based these estimates on
the full-time equivalent positions devoted to each program in FY99.
eThese and other estimated expenses for which there are no specific
appropriations are paid for from the FAS' annual appropriation for salaries
and expenses.
fThe Title I program provides financing at below market interest rates for
U.S. exporters of agricultural commodities to developing countries and
private entities. (See fn. 13 on p. 22 for an explanation of why we excluded
this program.)
gThe Rhode Island Export Assistance Center's International Trade Data
Network is different from the Global Technology Network developed by USAID.
The Rhode Island network contains a broad array of trade-related
information, whereas the USAID network contains only specific sales leads in
certain sectors from developing countries.
Source: GAO analysis of agency data.
Federal Agencies' Export Promotion Activities Overseas: Fiscal Year 1999
Estimated Expenses and Staffing by Country
Continued
Commercea Agricultureb Statec USAID (GTN only)d
Country Estimated Direct Other Estimated Direct Other Estimated Direct Other Estimated Direct Other
expenses hires staff expenses hires staff expenses hires staff expenses hires staff
Albania $2,600 0 1 $51,120 0.4 0.5
Algeria 34,286 1 0 $67,348 0 1 75,225 0.75 0
Angolae 0 1 40,767 0.65 0
Argentina 2,443,556 16 7 885,063 5 2 294,355 3.8 0 $60,000 1
Armenia 49,135 0 2 59,839 1.25 0
Australia 1,445,339 13 7 367,770 4 0 93,464 1.08 0
Austria 1,023,873 6 2 820,444 4 4 103,210 1.2 0
Azerbaijan 178,178 2 1 91,500 1 0
Bahamas 93,120 1.5 0
Bahrain 31,045 0.75 0
Bangladesh 66,500 1 1 114,900 2.5 0.25
Barbados 38,080 0 1 29,590 0.3 0
Belarus 59,685 0 1 0 0 0
Belgium 2,837,826 13 5 1,943,407 8 6 357,165 3.9 0.2
Belize 36,310 1.2 0
Benin 25,003 0.65 0 0.1
Bermuda 0 0 0
Bolivia 238,802 3.65 1
Bosnia & Herzegovina 80,949 0 1 81,619 0.98 0 1
Botswana 26,495 0.6 0 30,000 1
Brazilf 4,419,210 21 42 910,251 6 4 110,985 1.35 0.2 60,000 1
Brunei 45,250 1 0
Bulgaria 339,276 4 4 320,356 3 0 19,099 0.21 0.01 1
Burkina Faso 19,515 0.55 0
Burma 7,006 0 1 8,445 0.4 0
Burundi
Cambodia 20,841 0.4 0
Cameroon 67,818 2.32 0 0.1
Canada 2,644,162 24 6 495,872 4 0 335,855 3.95 0.1
Cape Verde 48,325 1.2 0
Central
African Rep. 9,815 0.15 0.1
Chad $37,762 0.63 0.13
Chile $1,179,440 11 3 $438,565 3 1 58,695 0.65 0 $40,000 1
Chinaf 6,154,494 18 66 2,200,106 5 17 319,241 3.57 0.05
Colombia 1,161,004 10 1 514,882 4 1 23,401 0.27 0 40,000 1
Congo
(Dem. Rep. of) 30,194 0.8 0
Congo
(Rep. of) 2,056 0.02 0
Costa Rica 492,108 4 2 452,996 3 1 36,120 0.4 0
Croatia 411,457 2 2 5,015 0.05 0 1
Cuba 0 0 0
Cyprus 119,520 1.7 0.6
Czech Rep. 664,449 6 5 59,239 1 1 22,575 0.25 0 1
Denmark 690,910 6 0 234,233 1 0 24,780 0.26 0
Djibouti 54,754 0.9 0 30,000 1
Dominican Rep. 677,813 5 7 499,201 2 2 46,150 0.5 0
Ecuador 465,869 6 2 172,128 2 2 0 0 0
Egypt 806,207 11 1 609,712 3 5 133,644 2.63 0 30,000 1
El Salvador 26,278 0 2 184,920 3.4 0
Eritrea 0.1
Estonia 29,220 0 1 97,800 1.5 0
Ethiopia 60,650 2.2 0 0.1
Fiji 111,973 2 0
Finland 354,460 3 1 33,175 0.45 0.1
France 3,433,490 21 9 1,056,658 6 2 44,435 0.5 0
Gabon 65,130 1.3 0
Gambia
Georgia 42,653 0 1
Germanyf 5,739,720 24 11 1,770,351 7 1 261,382 3.16 0
Ghana 0 1 16,197 0 1 52,950 2 0 28,800 1
Greece 950,133 10 1 331,728 2 3 83,710 1 0
Grenada
Guatemala 565,366 4 3 494,278 2 4 19,060 0.2 0
Guinea 25,075 0.55 0 0.1
Guinea-Bissau
Guyana $35,855 1 0
Haiti $503,187 1 3 135,360 1.8 0
Honduras 128,627 1 3 $13,058 0 2 122,650 1.6 0
Hong Kong
SARf 2,570,294 14 9 1,210,667 4 3 151,330 1.6 0 0.5
Hungary 996,665 8 2 9,180 1 0 114,245 1.3 0 1
Iceland 103,911 1.4 0
India 2,628,837 24 37 509,637 7 2 263,845 4.9 0 0.5
Indonesiaf 1,263,267 10 19 750,034 4 7 115,661 1.84 0 0.5
Ireland 526,177 4 2 208,544 1 2 0 0 0
Israel 1,097,903 8 8 190,299 1 1 234,465 2.7 0
Italyf 2,858,892 21 5 1,746,061 8 1 170,683 2 0
Ivory Coastg 1,029,708 6 5 405,742 3 1 100,870 1.2 0 $30,000 1
Jamaica 92,307 1 1 34,086 0 2 76,825 0.9 0
Japanf 7,585,136 46 6 4,614,017 20 5 655,238 7.65 0
Jordan 8,277 0 1 185,834 3.6 0
Kazakhstan 618,679 5 8 15,438 1 0 82,010 1.05 0 1
Kenya 629,041 4 6 409,630 1 2 46,150 0.5 0 30,000 1
Koreaf 2,225,183 21 6 1,964,702 9 7 27,987 0.33 0 0.5
Kuwait 683,267 5 4 227,541 2.65 0.5
Kyrgyz
Republic 9,030 0.1 0
Laos 37,105 1.05 0
Latvia 18,018 0 1 9,008 1 0 41,552 0.4 0
Lebanon 183,699 3.72 0
Lesotho 6,215 0.15 0
Liberia 22,575 0.25 0
Lithuania 10,849 0 1 55,665 0.85 0
Luxembourg 23,521 0.07 0.25
Macedonia 18,828 0 1 28,968 0.5 0 30,000 1
Madagascar 29,130 0.6 0 30,000 1
Malawi 22,657 0.39 0
Malaysia 931,101 9 6 326,872 3 3 0 0 0 0.5
Mali 113,805 2 0 30,000 1
Malta 6,100 102,966 1.7 0.5
Marshall
Islands $14,830 0.3 0
Mauritania 36,929 0.95 0 0.1
Mauritius 200,251 3.6 0 0.1
Mexicof $3,697,513 35 35 $2,964,608 12 6 29,290 0.34 0 $60,000 1
Micronesia 1,806 0.02 0
Moldova 0 1 27,090 0.4 0
Mongolia 133,510 1.8 1 100,000 2
Morocco 522,948 4 2 373,795 2 2 71,310 0.75 0 40,000 1
Mozambique 107,700 1 1 30,000 1
Namibia 95,864 1.85 0 30,000 1
Nepal 23,162 0.7 0
Netherlands 1,324,600 8 3 911,635 6 2 180,600 2 0
Netherlands
Antilles 0 0 0
New Zealand 351,293 6 0 250,525 2 1 36,120 0.4 0
Nicaragua 21,656 0 1 196,085 3.05 0
Niger 34,223 1.1 0
Nigeria 676,090 4 5 722,896 2 4 58,180 0.6 0 30,000 1
Norway 540,325 4 2 14,010 1 0 16,545 0.2 0
Oman 120,223 2.6 0
Pakistan 475,231 6 4 349,420 3 2 14,336 0.3 0
Palau 6,215 0.15 0
Panama 523,185 5 1 38,581 0 2 88,045 1.05 0 0.5
Papua
New Guinea
Paraguay 84,910 1.9 0
Peru 597,908 3 5 445,621 3 2 165,390 2.3 0 40,000 1
Philippinesh 1,880,225 12 15 606,451 4 2 182,085 2.7 0 0.5
Poland 1,208,984 9 9 568,683 4 3 46,903 0.75 0 1
Portugal 643,763 7 3 220,772 1 2 9,830 0.1 0
Qatar 162,716 2.75 0
Romania 365,206 3 4 48,433 1 0 41,030 0.6 0.9 1
Russia 3,292,439 21 25 1,495,117 9 11 98,509 1.15 0
Rwanda 26,534 0.75 0
Samoa
Saudi Arabiaf $2,787,709 23 15 $638,073 2 1 0 0 0
Senegale 0 1 $125,445 3.1 0 $31,900 1
Serbia-Montenegroi 55,993
Sierra Leone 4,715 0.1 0
Singaporef 1,684,198 8 11 920,006 3 2 50,682 0.8 0 0.5
Slovakia 144,125 1 3 776 48,147 0.6 0
Slovenia 29,138 0 1 52,605 0.75 0
South Africa 1,661,323 15 9 721,107 6 1 73,628 0.33 0 40,000 1
Spain 1,974,455 16 1 910,600 6 1
Sri Lankae 0 1 77,210 2.3 0 0.5
Sudan 0 0 0
Suriname 47,049 0.83 0.5
Swaziland 18,185 0.25 0
Sweden 606,993 8 2 427,266 4 1 8,885 0.3 0
Switzerland 947,138 4 4 1,038,982 4 0 15,099 0.16 0
Syria 61,603 1 0 205,567 3.25 0
Taiwanj 688,000 33 406,817 6 1,689,330 25.85 3 0.5
Tajikistan 1,033 0.03 0
Tanzania 165,414 3.58 0 30,000 1
Thailand 1,274,023 11 11 629,341 5 2 106,165 1.7 0 0.5
Togo 53,220 0.7 0 0.1
Trinidad & Tobago 33,731 0 1
Tunisia 112,086 2 0 111,312 2 0.1 40,000 1
Turkey 1,271,212 13 2 595,835 4 1 216,337 2.95 0
Turkmenistan 61,929 0 1 18,060 0.2 0
Uganda 21,060 0.4 0 37,000 1
Ukraine 1,007,227 6 10 247,464 1 2 43,995 1.05 0
United Arab
Emiratesf 971,541 8 1 467,218 4 0 138,515 1.3 0
United
Kingdomk 2,946,631 17 12 1,063,625 5 3 113,275 1.35 0
United Statesf l 4 0 251,321 3 0
Uruguay 113,277 0 2 212,800 3.05 0.35 40,000 1
Uzbekistan $493,779 4 6 $17,363 0 1
Venezuela 1,322,951 10 8 758,988 5 2 $93,300 1.1 0
Vietnam 1,971,078 4 17 447,943 1 6 59,580 1 0 0.5
West Bank
Yemen 5,741 0 1 90,056 1.5 0.7
Zambia 68,200 1.7 0 $30,000 1
Zimbabwee 0 1 51,660 0.2 0.9 30,000 1
Subtotal $103,927,182 708 594 $45,996,172 246 175 $14,301,742 216.97 12.94 $1,077,700 0 43.8
Non-location-Specific
costs 5,792,012 1,712,224
Total $109,719,194 708 594 $47,708,396 246 175 $14,301,742 216.97 12.94 $1,077,700 0 43.8
Legend
USAID = U.S. Agency for International Development
GTN = Global Technology Network
Note 1: Direct hires include U.S. government officers (U.S.& Foreign
Commercial Service officers, agricultural attach�s and counselors,
agricultural trade officers, State Dept. Foreign Service officers, etc.) and
foreign service nationals (local international trade professionals and
administrative staff). The numbers are "full time equivalents" (FTE)
representing staff time devoted to export promotion. The numbers for
Commerce represent full-time U.S. officers and foreign service nationals as
of
November 1, 1999; those for Agriculture represent full-time U.S. officers
and foreign service nationals as of October 28, 1999; those from State
represent FTE data collected from overseas posts from November 1999 through
February 2000.
Note 2: Other staff includes contractors (translators, drivers,
professionals, etc.) identified as individuals but excludes contractors
identified as companies. The numbers for Commerce and Agriculture represent
actual people; those for State and USAID represent FTEs.
Note 3: Three other agencies − the Export-Import Bank (Eximbank), the
Overseas Private Investment Corporation (OPIC), and the U.S. Trade and
Development Agency (TDA) − also have a limited overseas presence
related to export/investment promotion. In fiscal year 1999, Eximbank, OPIC,
and TDA each had one U.S. employee in a Caspian Trade and Investment Center
in Turkey. The cost, including salaries, for TDA was $196,568; Eximbank,
$151,530; and OPIC, $388,111. The OPIC budget includes funding for the
operation of the center. TDA and Eximbank also share some of these expenses.
Because the center was established in fiscal year 1999, the three
individuals did not arrive there until well into the fiscal year. TDA also
has a U.S. employee stationed in the Philippines, at a cost of $156,335,
including salary.
Note 4: Non-location-specific costs are costs associated with maintaining an
overseas presence that are not allocated to specific posts. These include
the salary and benefits of Washington, D.C.-based staff responsible for
administering an agency's overseas presence, military postage, and other
costs.
a The estimated expenses for Commerce include operating and administrative
costs: International Cooperative Administrative Support Services costs; U.S.
officer and foreign service national salaries and expenses; and contractor
costs.
b The estimated expenses for Agriculture include the same type of costs as
those for Commerce.
c Of 230 posts, 196 (85 percent) reporting; includes all embassy posts in
capital cities. The estimated expenses for State include U.S. officer and
foreign service national salaries and expenses, and contractor costs. State
officials did not include the Department's operating and administrative
expenses because export promotion is only one of many functions performed by
the Department at its overseas posts. Posts in some countries, such as
Spain, did not report any resources devoted to export promotion; State
officials at these posts said most of this work is done by Commerce and
Agriculture officials.
d The GTN is a computerized data base that automatically matches U.S.
companies with leads from potential foreign buyers in developing countries.
Figures of less than one staff in the "Other staff" column reflect estimates
of the percentage of time these people spend on USAID/GTN trade lead
activities. This column includes USAID contractors and Commerce officials
who spend all of their time on USAID/GTN activities, Commerce officials who
spend about 50 percent of their time on these activities, and State
officials who spend about 10 percent of their time on these activities. The
Commerce and State officials are included under the "Direct hires" columns
for those agencies; they are listed again here to show how many government
FTEs are involved in the GTN and to indicate all the countries in which
trade leads are gathered. The estimated expenses represent the cost of the
contractors paid by USAID.
e Estimated expenses for these countries are included in the estimated
expenses of other, larger, nearby countries, to which officials stationed in
the smaller countries report. For example, officials in Angola report to
South Africa.
f One or more Agricultural Trade Offices are located in these countries.
g Staff figures include Commerce officials assigned to the African
Development Bank.
h Staff figures include Commerce officials assigned to the Asian Development
Bank.
i Agriculture had an office in Serbia in fiscal year 1999 that has been
closed.
j The United States has no official presence in Taiwan. Trade and other
activities are carried out by the American Institute in Taiwan, which
receives funding from Commerce, Agriculture, State, and other U.S. agencies.
k Staff figures include Commerce officials assigned to the European Bank for
Reconstruction and Development.
l Staff figures include (1) Commerce officials assigned to the World Bank
and the Inter-American Development Bank in Washington, D.C.; and (2)
Agriculture officials covering the Caribbean region from Miami, Florida. The
salaries, travel, and other expenses for the Commerce officials are included
in the "non-location-specific costs" for Commerce, since they are connected
with Washington, D.C., and not a specific overseas post.
Source: GAO analysis of agency data.
Objectives, Scope, and Methodology
In order to identify the federal agencies involved in export promotion and
the export promotion-related functions they perform, we met with officials
from the Trade Promotion Coordinating Committee and representatives from the
committee's member agencies. We also conducted separate interviews with
officials from the Departments of Agriculture, Commerce, Defense, Energy,
the Interior, State, Transportation, and the Treasury; the Environmental
Protection Agency; the Export-Import Bank; the Office of Management and
Budget; the Overseas Private Investment Corporation; the Small Business
Administration; the U.S. Agency for International Development; the U.S.
Trade and Development Agency; and the U.S. Trade Representative.
In order to (1) obtain the most recent budget and staffing data pertaining
to each agency's total export promotion activities and (2) isolate each
agency's current resources spent on export promotion activities overseas, we
reviewed websites and budget, staffing, and other documents from the
Departments of Agriculture, Commerce, Energy, State, Transportation, and the
Treasury; the Export-Import Bank; the Overseas Private Investment
Corporation; the Small Business Administration; the U.S. Agency for
International Development; and the U.S. Trade and Development Agency. We
also conducted extensive interviews with officials from these agencies and
from the Office of Management and Budget. In addition, we examined the
President's 2001 budget request, which contains each agency's appropriations
for fiscal year 1999 and full-time equivalent positions filled during this
period. Since fiscal year 1999 was the most recently completed period, we
used data for that year.
To quantify the financial resources devoted to export promotion activities
in fiscal year 1999, we used the amounts appropriated for these activities
during this period. In those instances in which there were no specific
appropriations for export promotion activities, we used obligated funds or
amounts estimated by agency officials.19 To quantify the human resources
devoted to export promotion activities during this period, we used the
full-time equivalent positions actually filled at each agency by people
engaged in these activities.
With regard to overseas staffing data, we included all of the officials in
the Commerce Department's U.S. and Foreign Commercial Service and the
Agriculture Department's Foreign Agricultural Service stationed overseas in
fiscal year 1999.20 We included all these officials because they work full
time on export promotion. Specifically, promoting U.S. exports is the stated
mission of the U.S. and Foreign Commercial Service. With regard to the
Foreign Agricultural Service, Agriculture Department officials told us that
agricultural trade officers and agricultural attach�s and counselors
stationed overseas help U.S. exporters by providing information, counseling,
and other export assistance services. They said that agricultural attach�s
and counselors also spend time on "market intelligence" and "market access"
activities.21 They defined market intelligence as gathering information on
market conditions (for example, weather affecting crop production) and trade
policies. They said market access activities often involve calling local
government officials to get them to admit legally imported U.S. commodities
waiting on the docks or in dockside warehouses (while the U.S. exporter pays
warehouse fees). We have included agricultural attach�s' and counselors'
time spent on market intelligence and market access activities for two
reasons: (1) these activities are related to export promotion and (2) the
Department's listing of overseas resources does not specify how much time
officials at each post spend on export promotion vs. market intelligence or
other activities.22
State Department foreign service officers are involved in a wide range of
activities (for example, diplomacy, national security, cultural exchanges,
etc.) in addition to export promotion. Since these activities are less
likely to be related to export promotion than the market intelligence and
market access activities engaged in by agricultural attach�s and counselors,
we asked the State Department to ascertain the percentage of officers' time
(in terms of full-time equivalent positions) spent on export promotion
activities at each post in fiscal year 1999. In order to comply with our
request, the State Department spent several months polling each of its
230 overseas posts and compiling data from 196 cables (an 85-percent
response rate that included all major U.S. embassies).
The U.S. Agency for International Development provided us with a list of
contractors and officials from the Departments of Commerce and State who
gathered trade leads overseas for its Global Technology Network in fiscal
year 1999.23 The list includes the percentage of time these people spent
gathering the leads, the countries in which they worked, and any U.S. Agency
for International Development funds obligated to pay them during this
period. In order to avoid double counting, we subtracted the full-time
equivalent positions attributed to the Commerce and State Departments from
the U.S. Agency for International Development staffing data in tables 2 and
3. We did not subtract this information from the U.S. Agency for
International Development data in appendix III because doing so would result
in not indicating the countries in which these officials gathered trade
leads for the network.
In order to ascertain which agencies participate in the U.S. Agency for
International Development's Global Technology Network and describe the
nature of their participation, we interviewed officials from the Departments
of Agriculture, Commerce, Energy, and State; the
Export-Import Bank; the Overseas Private Investment Corporation; the Small
Business Administration; the U.S. Agency for International Development; and
the U.S. Trade and Development Agency. We then cross-checked the information
obtained from each of these agencies against that obtained from the others.
We provided a draft of this report to the agencies discussed in the report
and to the Office of Management and Budget. The following agency officials
submitted comments:
� Department of Agriculture
� Deputy Director, Strategic Planning, Office of the Administrator, Foreign
Agricultural Service
� Agricultural Marketing Specialist, Commodity and Marketing Programs,
Foreign Agricultural Service
� Department of Commerce
� Deputy Under Secretary for International Trade
� Department of Energy
� Senior Advisor to the Assistant Secretary for Fossil Energy
� Acting Director, Office of Energy Outreach, Energy Efficiency and
Renewable Energy
� Department of Transportation
� Director, Office of Shipbuilding Financing, Maritime Administration
� Department of the Treasury
� International Economist, Multilateral Development Bank Office
� Program Analyst, Office of Trade Finance
� Export-Import Bank
� Director, Policy Oversight and Review, Office of Policy and Planning
� Office of Management and Budget
� Examiner, International Affairs Division
� Overseas Private Investment Corporation
� Director, Financial Management
� Small Business Administration
� Deputy Assistant Administrator, Office of International Trade
� State Department24
� Deputy Coordinator for Business Affairs
� U.S. Agency for International Development
� Deputy Assistant Administrator, Center for Economic Growth and
Agricultural Development, Bureau for Global Programs, Field Support and
Research
� U.S. Trade and Development Agency
� Legislative Liaison
We conducted our work between August 1999 and March 2000 in accordance with
generally accepted government auditing standards.
Comments From the Department of Commerce
Comments From the U.S. Agency for International Development
GAO Contact and Staff Acknowledgments
Virginia C. Hughes, (202) 512-5481
In addition to Ms. Hughes, David Artadi, Carlos Evora, Kay Halpern, Ernie
Jackson, and Rona Mendelsohn made key contributions to this report.
(711434)
Table 1: Federal Agencies' Export Promotion Activities 11
Table 2: Federal Resources Devoted to Export Promotion Activities
in Fiscal Year 1999 20
Table 3: Federal Agencies' Overseas Resources Devoted to Export Promotion
Activities in Fiscal Year 1999 26
Table 4: Federal Agencies' Participation in the U.S. Agency for
International Development's Global Technology Network 30
Figure 1: Agencies' Share of Federal Dollars Devoted to Export
Promotion Activities in Fiscal Year 1999 5
Figure 2: Agencies' Share of Staff Devoted to Export Promotion
Activities in Fiscal Year 1999 6
Figure 3: Agencies' Share of Estimated Expenses Devoted to Export Promotion
Activities at U.S. Overseas Posts in Fiscal Year 1999 7
Figure 4: Agencies' Share of Staff Devoted to Export Promotion
Activities at U.S. Overseas Posts in Fiscal Year 1999 8
1. In some instances, agencies have programs that do not facilitate specific
export transactions or involve direct contact with exporters but
nevertheless have export promotion as their stated goal or indirectly
promote exports. For example, the Agriculture Department's Market Access
Program provides funds to agricultural trade associations, state regional
groups, state agencies, and cooperatives to support the overseas promotion
of agricultural goods. In another example, the programs of the Overseas
Private Investment Corporation promote investment in developing countries,
which indirectly facilitates U.S. exports. We have therefore included such
programs in our report.
2. A January 1992 GAO report had found that federal export promotion
activities were fragmented among numerous agencies and lacked any
governmentwide strategy or priorities. See Export Promotion: Federal
Programs Lack Organizational and Funding Cohesiveness (GAO/NSIAD-92-49, Jan.
10, 1992).
3. We are not commenting on the strategic plan in this report. For our
previous discussions of how this plan could be more effective in creating a
streamlined approach to promoting U.S. exports, see Export Promotion: Issues
for Assessing the Governmentwide Strategy
(GAO/T-NSIAD-98-105, Feb. 26, 1998) and National Export Strategy
(GAO/NSIAD-96-132R, Mar. 26, 1996).
4. One of these entities, the U.S. Information Agency, has since become part
of the State Department.
5. For example, these include export counseling, technical assistance, and
grants for trade promotion facilities provided by Commerce Department units
outside of the International Trade Administration, and other activities.
6. Two officials at the Treasury Department spend a small fraction of their
time educating U.S. companies about business opportunities with the
multilateral development banks and responding to inquiries concerning
specific bank projects in developing countries. The multilateral development
banks include the World Bank Group and the Inter-American Development Bank
Group in the United States, the African Development Bank Group in the Ivory
Coast, the Asian Development Bank in the Philippines, and the European Bank
for Reconstruction and Development in the United Kingdom. These banks
promote economic growth and the development of market economies by providing
loans and loan guarantees to developing countries and transitional
economies.
7. For more information on how these centers are serving U.S. exporters, see
Export Promotion: U.S. Export Assistance Centers Seek to Improve Services
(GAO/NSIAD-99-180, June 25, 1999).
8. Commercial risk includes nonpayment of goods or services sold. Political
risk includes war and other forms of political violence; seizure of assets
by foreign governments; and the inability to convert foreign currency into
dollars or other globally traded currencies, such as pounds or yen.
9. Longer terms are available for financing large aircraft or power plants.
10. The Export-Import Bank provides financing for agricultural products at
terms of up to
1 year, whereas the Agriculture Department provides financing at terms of up
to 3 years for many commodities and up to 10 years for others, such as
breeder livestock. Export-Import Bank officials stated that the Bank
generally provides financing for agricultural products only when money
appropriated by Congress for Agriculture Department financing programs has
been used up. Regarding shipbuilding, the Export-Import Bank officials said
the Bank would provide terms of up to 8.5 years; however, they did not
recall the last time the Bank financed the export sale of a ship. The
Department of Transportation provides financing for shipbuilding at terms of
up to 25 years.
11. The National Trade Data Bank is available via the internet for a fee. It
is also available free of charge at Commerce's Trade Information Center and
at libraries designated as depositories of information generated by the
federal government. Such libraries are usually affiliated with universities.
12. This network can also be accessed via the internet for a fee.
13. These programs and activities do not include $829.85 million
appropriated in fiscal
year 1999 for the Public Law 480 Title I food aid program. This program
provides financing at below-market interest rates for U.S. exports of
agricultural commodities to developing countries and private entities.
Although its stated goal is to give priority to "those developing countries
which have demonstrated the potential to become commercial markets," we have
found that its importance in helping develop long-term U.S. agricultural
markets has not been demonstrated. (See Food Aid: Competing Goals and
Requirements Hinder Title I Program Results (GAO/GGD-95-68, June 26, 1995),
p. 5.
14. This amount is included in the $1.888 billion in total funds devoted to
export promotion activities during this period.
15. This information is based on reports from 196 (85 percent) of 230 State
Department posts overseas and includes all U.S. embassies in capital cities.
16. The U.S. Agency for International Development obligated $15,000 for such
grants in fiscal year 1999.
17. Seven hundred twenty (50 percent) of these leads came from Latin
America, primarily from Argentina, Brazil, and Mexico; 556 (39 percent) came
from Asia, primarily from India, Korea, and the Philippines.
18. Some worked full-time and some worked part-time.
19. In this report, we use the term "appropriated funds" to refer to amounts
specifically provided in annual appropriations acts or other legislation.
The term "obligated funds" is used to refer to amounts that an agency has
set aside or committed in a given fiscal year to pay for a certain purpose.
20. The Agriculture and Commerce Departments provided us with a listing by
post of overseas staff "on board" as of October 28, 1999, and November 1,
1999, respectively.
21. In their comments, Commerce Department officials noted that the U.S. and
Foreign Commercial Service also engages in market access and market
intelligence activities.
22. The Agriculture Department did not include market intelligence or market
access activities in its estimate of resources devoted to export promotion
that it prepared for the Trade Promotion Coordinating Committee's annual
report.
23. With the exception of this network, the overseas staffing data includes
only those positions filled by people hired directly by each agency--U.S.
officers and "foreign service nationals" (local international trade
professionals and administrative staff)--and not by contractors. Contractor
information is shown in appendix III in the "other staff" column for each
agency.
24. The State Department reviewed a draft of the report but had no comments.
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